Marchpole is one of those stocks which have had a really bad time. Boardroom battles, losses, price collapse, profit warnings up the ying yang.

Now all of those things seem to be sorted out, new management are getting to grips, new contracts and the price is on the up. So much so that Monday ought to see a 50/200 day MA golden cross.

DYOR of course, but I think I will be putting a few of these away at the open.

Socco

caught by surprise there. Bagged a few.

unbelievable.

capa

beautiful tree shake if anyone witnessed that?

I did. A classic.

P

Missed the latest action today. Well done to those who managed to top up on that dip. Found this on the Scotsman.com:

11:02am (UK)
Marchpole Hails Designer Deal

By Phil Waller, PA City Staff


Fashion group Marchpole Holdings today hailed a new deal to make clothing for prestigious menswear label Emanuel Ungaro as it posted a 216% rise in half year pre-tax profits to 2.5 million.

London-based Marchpole said it would produce two collections per season for French fashion house Ungaro under the eight year deal, which it signed in September.

The group said the deal was among a number of business initiatives it had taken that had made its cost structure able to support considerable increases in sales without significant further investment in fixed costs.

It said strong sales of about 15.7 million, up 97% on the same period last year, had driven the ahead-of-expectations pre-tax profits. Operating profits were up 194% to 2.6 million.

Marchpole designs, makes and sells clothing and accessories for six world class brands including Yves Saint Laurent (YSL), Boateng, Jean-Charles de Castalbajac (JCC), JC de Castalbajac/Rossignol, Emanuel Ungaro and Ungaro.

It said YSL and Boateng combined spring/summer 2005 order books were up 11% to 11 million on the first half the previous year, while the JCC spring/summer sales order book had hit 2.5 million.

The group also said JCC had concluded a 25 million euros (17.4m) seven year distribution agreement with Korean partner Daikyung.

It added that the groups autumn/winter order book currently stood at more than 16.6 million, of which 86% had already been delivered to customers to date.

Chief executive Greg Tufnell said Marchpole was succeeding in its strategy of developing its current brands while extending the portfolio through acquisitions and licensing agreements.

We are very pleased with Marchpoles performance and expect this continuing success to be reflected in the full year results, he said.

The group announced that it would pay an interim dividend of 0.25p per share to investors in January.

Broker Shore Capital described the results as excellent and said it was upgrading its full year pre-tax profit forecast for 2005 by about 200,000 to 4.5 million.

And yet the price didn't budge today apart from a short sharp burst upwards at the start of trading. Was all this good news in the price already?
The possible takeover of that Italian fashion house (name escapes me - senior moment - please excuse) could mean that a placing is in the offing. This would certainly subdue the share price.
Let's hope that good press and the tip sheeets will see it fly again in the days ahead. We need to see it break through resistance at 36p before it can truly start to motor and challenge the 40p level.

Thanks for that GAV, quite some write up.

Don't think it will too long before the word gets round that these are cheap.

capa

You're welcome Capa. Would be expecting some updates in the magazines very soon. You know how fast these move on a tip somewhere! Been having a bit of a think about whether there may be some more director buying, always nice to see them put their money where their mouth is, but they do have shed loads of these as it is. But if there's no more buying, then maybe we can read that as they are lining up the Feraud brand as reported previously. I'm not sure if they could buy knowing full well of a possible acquisition, perhaps not.

Pond Life, as to whether the good news is in the price already, then I don't think so. The possible acquisition of Feraud or indeed any other brand could be paid for with the outstanding shares, 42m I think of the top of my head. In the short term, it may subdue the sp as you point out, but looking at the bigger picture, what would an acquistition bring to Marchpole. Quite a lot IMO, especially if they can get it cheap enough.

Another article on Citywire:

Marchpole dressed for success, says Shore
Published: 14:30 Tue 9 Nov 2004
By Dylan Lobo, Market Reporter
Email to a friend | Printable Version


Mens fashion group Marchpole Holdings has more than doubled first-half profits, leading housebroker Shore Capital to raise its forecasts.

Pre-tax profit at Marchpole (MPH) came in at 2.5 million versus 0.8 million a year ago, with turnover up 97% to 15.7 million.


The company, which designs and sells clothing and accessories for six of the biggest names in fashion, including Yves Saint Laurent, Boateng and Jean-Charles de Castelbajac (JCC), also declared an interim dividend of 0.25p, compared with nil a year earlier.


The group's autumn-winter order book stands at 16.6 million, of which 86% has already been delivered to customers.


Marchpole shares gained 1.25p to 34.5p.


Chief executive Greg Tufnell said the results highlighted the group's success at developing our current brands while extending our portfolio through acquisitions and licensing agreements.


Tufnell said he expected continuing success to be reflected in the full year results, with the board adding that the company is currently in discussion with third parties to advance new opportunities both in terms of licensing and brand acquisitions.


John Stevenson, retail analyst at Shore Capital, said the results were ahead of his forecasts and raised his profit forecast for 2005 by 0.2 million to 4.5 million.


Shore predicted compound earnings per share in excess of 32% in the next three years, with return on capital employed rising from 36.3% to 70% over the same period.

Stevenson, applauded the successful integration of JCC into the business, which was further strengthened last week through the distribution and marketing deal struck in Korea for the JCC brand.


Shore is also looking forward to next years debut of the Ungaro collections designed by top designer Jacob Levy, for which Marchpole owns a worldwide licence.

Shore Capital aren't exactly chancing their arm, are they? We got 2.5m in this half year according to post 263.......

MPH easily beat forcast way ahead of expections eyes blindfolded and hands tied behing back.Buy,imho.dyor.

L2 only 1 mm logged on - EVO

KBC decided to muscle in...

Agree Shore aren't exactly sticking their necks out but I prefer this cautiousness to overt optimism.

Think about it, plenty of broker upgrades to come ! Far better than the alternative imo.

capa

Still don't understand why the sp didn't fly on those results.....couldn't have asked for better,surely.

exactly my thoughts. especially as the price had bee dropping recently anyway. I ex[ecte 38p with these results. However if the mags make it a buy at the weekend it could make up some ground

Could it be this Feraud business, punters not sure how it might pan out?

55011, Feel punters might be put off because of this Feraud business. Maybe theres some uncertainty because nobody knows how mph will actually fund the acquisition... Long term its a cert, but feel the sp is being held back until we have some clarification on whether its a deal involving shares or money etc etc

On the other hand, now that recovery seems to be confirmed by these results, there is the possibility that a bid might come in at these relatively cheap levels.

Another possibility, either way I feel our patience will be well rewarded. If we do managed to get Freaud, chances are we could get them at a steal due to thier current financial state! Really feel it would be major acquisition and would certainly put us on a new level.

Anyone noticed the last few trades that have gone through, pretty decent sizes.

chunky trades gav... cant see where this is going but up?
any comment on bdh?